As summer hits its peak, it’s a good time for employers to think about more than just who’s away on holiday — they should also notice who isn’t taking any time off.
Why Employers Should Pay Attention to Unused Holiday Leave
Despite the warmer weather, many employees are staying put at their desks. Recent HR research shows only 35% of UK workers used up all their holiday leave last year, and 17% finished the year with more than five unused days. While this might seem to benefit day-to-day operations, it could actually lead to problems in the long run, including reduced employee wellbeing, lower productivity, and even legal issues.
There are several reasons why employees may be hesitant to take time off, such as staff shortages, pressure to stay available, or fear of falling behind. And even when they do take leave, more than half (57%) admit to working while on holiday, meaning they aren’t getting the full rest they need.
Although a proposed legal “right to disconnect” was removed from the current Employment Rights Bill, the government has said it will introduce a new Code of Practice in the future. This could lead to clearer rules around contacting employees outside working hours and ensuring holidays are truly uninterrupted.
Encouraging Time Off and Managing Leave
Employers should actively encourage staff to take regular time off throughout the year, and doing so can prevent a year-end rush for leave and help protect against burnout, overwork, and legal risks.
According to the Working Time Regulations 1998, most employees are entitled to 5.6 weeks of paid annual leave, which equals 28 days for someone working five days a week. This can include bank holidays, unless an employer offers them separately.
Importantly, this leave is “use it or lose it.” In most cases, unused days can’t be carried over to the next year, unless the employee was unable to take them due to reasons like long-term illness or maternity leave. Some employers may allow extra carryover, but only if it’s clearly stated in a written policy or contract.
That’s why it’s essential to have clear holiday policies and good communication. Workers should know how much leave they have, when they can use it, and what happens if they don’t.
Besides legal obligations, encouraging time off makes good business sense. Employees who take regular breaks are more motivated, healthier, and better able to manage stress.
Note: This article provides general information and is not intended as legal advice.
Howell Jones is a team of expert Employment Solicitors in Surrey. Contact our team today for more advice and information.
